Annaly Capital Management (NYSE:NLY) Reaches New 12-Month Low - Should You Sell?

Key Points

• Annaly Capital Management hit a 52-week low, falling to $17.61 and trading about 4.2% lower; it had previously closed at $18.33.
• Despite the decline, analysts’ consensus rating is “Moderate Buy”, with an average price target of $21.67.
• The REIT reported quarterly EPS of $0.80, above the $0.77 consensus estimate, and paid a $0.75 quarterly dividend—an annualized yield of about 17.1% at the article’s cited price.

Annaly Capital Management Inc (NYSE:NLY - Get Free Report) reached a new 52-week low on Thursday. The company traded as low as $17.61 and last traded at $17.6260, with a volume of 11,426,364 shares trading hands. The stock had previously closed at $18.33.

Analyst Ratings Changes

NLY has been the topic of a number of recent research reports. Royal Bank Of Canada set a $21.00 target price on Annaly Capital Management and gave the stock an "outperform" rating in a research note on Thursday, October 22nd. Barclays set a $21.00 price target on Annaly Capital Management and gave the company an "equal weight" rating in a research report on Thursday, October 22nd. Piper Sandler decreased their price target on Annaly Capital Management from $25.00 to $21.50 and set an "overweight" rating for the company in a report on Friday, October 9th. JPMorgan Chase & Co. boosted their price target on Annaly Capital Management from $19.00 to $19.50 and gave the company an "overweight" rating in a report on Thursday, October 22nd. Finally, BTIG Research set a $21.00 price objective on Annaly Capital Management and gave the stock a "buy" rating in a research report on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $21.67.

Annaly Capital Management Trading Down 4.2%

The business has a fifty day simple moving average of $19.60 and a two-hundred day simple moving average of $21.75. The company has a market cap of $13.84 billion, a PE ratio of 12.34, a price-to-earnings-growth ratio of 1.43 and a beta of 1.24.

Annaly Capital Management (NYSE:NLY - Get Free Report) last issued its earnings results on Tuesday, October 20th. The real estate investment trust reported $0.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.03. The company had revenue of $1.93 billion during the quarter, compared to analysts' expectations of $637.41 million. Annaly Capital Management had a return on equity of 16.65% and a net margin of 15.52%. Equities analysts expect that Annaly Capital Management Inc will post 3.13 EPS for the current year.

Annaly Capital Management Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th were given a $0.75 dividend. This represents a $3.00 annualized dividend and a yield of 17.1%. The ex-dividend date of this dividend was Wednesday, September 30th. Annaly Capital Management's dividend payout ratio (DPR) is currently 209.79%.

Insiders Place Their Bets

In other news, Director Scott Wede bought 50,000 shares of Annaly Capital Management stock in a transaction that occurred on Friday, November 6th. The shares were purchased at an average price of $18.80 per share, with a total value of $940,000.00. Following the completion of the acquisition, the director directly owned 50,000 shares in the company, valued at $940,000. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.15% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Markowski Investments purchased a new stake in shares of Annaly Capital Management during the 2nd quarter worth $37,000. Jacobi Capital Management LLC purchased a new position in Annaly Capital Management in the third quarter valued at $39,000. Fourth Dimension Wealth LLC increased its holdings in Annaly Capital Management by 30.3% in the second quarter. Fourth Dimension Wealth LLC now owns 2,150 shares of the real estate investment trust's stock valued at $48,000 after buying an additional 500 shares during the last quarter. Bessemer Group Inc. increased its holdings in Annaly Capital Management by 42.6% in the first quarter. Bessemer Group Inc. now owns 3,699 shares of the real estate investment trust's stock valued at $79,000 after buying an additional 1,105 shares during the last quarter. Finally, Wealth Enhancement Trust Services Inc. raised its stake in Annaly Capital Management by 435.9% in the third quarter. Wealth Enhancement Trust Services Inc. now owns 4,175 shares of the real estate investment trust's stock valued at $79,000 after buying an additional 3,396 shares in the last quarter. Institutional investors and hedge funds own 51.56% of the company's stock.

About Annaly Capital Management

Annaly Capital Management, Inc. is a mortgage real estate investment trust (REIT) that invests in assets tied to the U.S. housing and mortgage markets. Its portfolio includes agency mortgage-backed securities, residential credit investments and mortgage servicing rights. The company's agency investments include mortgage-backed securities whose principal and interest payments are guaranteed by government-sponsored enterprises or government agencies. Its residential credit activities include investments in mortgage loans and securities that do not carry those guarantees, while its servicing rights relate to the collection and administration of mortgage payments.

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